OWNERSHIP

In 1998, Vickers decided to sell Rolls-Royce Motors. The most likely buyer was BMW, who already supplied engines and other components for Rolls-Royce and Bentley cars, but BMW's final offer of £340 million was beaten by Volkswagen's £430m.

A stipulation in the ownership documents of Rolls-Royce dictated that Rolls-Royce plc, the aero-engine maker would retain certain essential trademarks, including the Rolls-Royce name and logo if the automotive division was sold. Although Vickers plc sold the vehicle designs, nameplates, administrative headquarters, production facilities, Spirit of Ecstasy and Rolls-Royce grill shape trademarks to Volkswagen AG, Vickers' Rolls-Royce plc subsidiary chose to license the Rolls-Royce name and logo to BMW AG for £40m, because Rolls-Royce plc had recently had joint business ventures with BMW.

BMW's contract to supply engines and components to Rolls-Royce Motors allowed BMW to cancel the contract with 12 month's notice. Volkswagen would be unable to re-engineer the Rolls-Royce and Bentley vehicles to use other engines within that time frame. With the Rolls-Royce brand identification marks split between the two companies and Volkswagen's engine supply in jeopardy, the two companies entered into negotiations.

Volkswagen agreed to sell BMW the Spirit of Ecstasy and grill shape trandemarks and BMW agreed to continue supplying engines and components until 2003. Volkswagen continued to produce Rolls-Royce branded vehiles between 1998 and 2003, giving BMW time to build a new Rolls-Royce administrative headquarters and production facility on theGoodwood Estate near Chichester, West Sussex and develop the Phantom, the first Rolls-Royce from the new company. Rolls-Royce Motor Cars Limited became the exclusive manufacturer of Rolls-Royce branded cars in 2003.